9 Former Giant Supermarket Land Owned By HERO Will Be Made As Hypermart By Conglomerate Mochtar Riady's Company

Hypermart outlet. (Photo: Doc. Hypermart)

JAKARTA - Some time ago, PT Hero Supermarket Tbk (HERO) closed all Giant Supermarket outlets. And now, some of the land where the Giant Supermarket has been closed has been taken over by the manager of the Hypermart owned by the boss of the conglomerate Lippo Mochtar Riady, namely PT Matahari Putra Prima Tbk (MPPA).

The total land area of ​​the former Giant Supermarket that MPPA annexed is nine. In the disclosure of information on the Indonesia Stock Exchange (IDX) website, quoted on Tuesday, November 30, this step was taken by MPPA as one of its business expansion strategies in the third quarter of 2021, when the retail business began to rise amid relaxation. PPKM (Restrictions on Community Activities).

“Despite strict PPKM restrictions in the third quarter of 2021 with shop and mall closures, MPPA's market share continued to increase to 27.6 percent which is the highest based on NielsenIQ data. The nine new stores (ex-Giant locations) will lead the way to further increase market share", wrote MPPA management.

MPPA manages several retail stores and FMCG (Fast Moving Customer Goods) products through several stores under the banners of Hypermart, Foodmart, Hyfresh, Boston Health & Beauty, FMX, and SmartClub.

MPPA Chief Executive Officer Elliot Dickson said after the sales figures declined due to the tightening of PPKM in August-September 2021, the trend reversed from October 2021.

"With the loosening of community mobility, PPKM rates and business operating hours, October sales showed significant growth compared to previous months," said Elliot.

MPPA's retail business was also supported by online sales which grew 167 percent. The contribution of online sales represented 11% of MPPA's total regular sales in the third quarter.

Elliot explained that retail sales including from Hypermart and e-commerce businesses increased in October compared to September, with details: Regular sales in stores increased 27 percent; Online business sales through e-commerce increased by 19 percent; Overall October sales increased 9 percent from a year earlier.

Meanwhile, sales from offline stores started to increase in October. MPPA sees online business as strong and continuing to generate positive growth.